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Post by lonerifle on Mar 11, 2018 14:59:31 GMT
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michaelc
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Say No To T.D.S.
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Post by michaelc on Mar 11, 2018 18:10:02 GMT
Very interesting. My main takeaway from the article is FC will lend will lend other people's money to almost anyone to get the volumes up.
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rogerthat
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Post by rogerthat on Mar 11, 2018 21:14:37 GMT
Well that is wonderful news for all the backers who showed faith in FC's concept and are now likely to multiply their investment many times over. Likewise, the founders who themselves will all doubtless become millionaires overnight (if they aren't already). Perhaps whilst your pondering the thought of whether to pay your mortgages off or have an extra week in Butlins this year, you could spare a thought for the lowly investors that made your dream possible and recompense them for some of the appalling loans you brought to market and which ended going t*ts up after one or two payments. If you're thinking of having a beano for all the employees by way of reward I can suggest two or three hotels in London & Eastbourne which would be more than happy to accommodate your guests on a book now, never pay later arrangement. They come highly recommended..by yourselves in fact. Oh..the irony.
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jlend
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Post by jlend on Mar 12, 2018 18:57:51 GMT
Funding Circle estimated up to £2 billion IPO when the last accounts show
Revenue £50.9 million;
Operating expenses £103.1 million;
Losses £35.7 million
£1 billion lent in the year
Loans outstanding at year end £1.37 billion
Now 78k investors according to the website
Compared to AJ Bell estimated IPO £400m
Revenue £75.6m
Pre tax profit £21.7m
Pays a dividend to existing shareholders
172,000 clients
42 billion assets under management
I appreciate they are different types of business and Funding Circle may continue to grow at a higher rate. Ì just hope we are not seeing a bubble in p2p valuations....
It will be curious to see what IPO valuations are put against Ratesetter and Assetz when they come around to listing
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blender
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Post by blender on Mar 12, 2018 19:42:12 GMT
It's not just the current UK business. What they have is the technology of the platform (yes we may pick holes) and the IP of the computerised credit assessment model. The question is how readily that can be placed into markets worldwide, and how much business can be grown from that.
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jlend
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Post by jlend on Mar 12, 2018 20:56:10 GMT
It's not just the current UK business. What they have is the technology of the platform (yes we may pick holes) and the IP of the computerised credit assessment model. The question is how readily that can be placed into markets worldwide, and how much business can be grown from that. Agreed With 70% of their income coming from the origination fees they need to grow very quickly to cover overheads
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blender
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Post by blender on Mar 13, 2018 0:08:29 GMT
Yes I agree. If we take the UK loan book as about £1.5Bn in 2017, then the 1% charge through all the lender types, including FCIT, is only £15M. To stand still they need to replace about a third of the book pa, which at a 4% fee is only £20M. Add some more for growth and you start getting to that £50M income number. These are not big numbers - after seven years. And they pay a lot of people. I wouldn't even give one of my billions for just that business.
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jlend
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Post by jlend on Mar 13, 2018 7:21:36 GMT
Yes I agree. If we take the UK loan book as about £1.5Bn in 2017, then the 1% charge through all the lender types, including FCIT, is only £15M. To stand still they need to replace about a third of the book pa, which at a 4% fee is only £20M. Add some more for growth and you start getting to that £50M income number. These are not big numbers - after seven years. And they pay a lot of people. I wouldn't even give one of my billions for just that business. Having been involved in the first dot com bubble in a business incubator run by a well known insurance company I have seen how businesses can get carried away. Then reality sinks in when they scale up and try operating as a proper business.
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ashtondav
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Post by ashtondav on Mar 13, 2018 9:25:38 GMT
Well that is wonderful news for all the backers who showed faith in FC's concept and are now likely to multiply their investment many times over. Likewise, the founders who themselves will all doubtless become millionaires overnight (if they aren't already). Perhaps whilst your pondering the thought of whether to pay your mortgages off or have an extra week in Butlins this year, you could spare a thought for the lowly investors that made your dream possible and recompense them for some of the appalling loans you brought to market and which ended going t*ts up after one or two payments. If you're thinking of having a beano for all the employees by way of reward I can suggest two or three hotels in London & Eastbourne which would be more than happy to accommodate your guests on a book now, never pay later arrangement. They come highly recommended..by yourselves in fact. Oh..the irony. So what percent of loans are we talking about? IMO all platforms have this issue - as do all the banks. The only way to avoid it is put money on deposit. After 13 years of p2p my returns are spanking cash, even with these minor irritations. Rule 1, diversify Rule 2, don’t forget Rule 1
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jlend
Member of DD Central
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Post by jlend on Mar 13, 2018 9:49:57 GMT
Well that is wonderful news for all the backers who showed faith in FC's concept and are now likely to multiply their investment many times over. Likewise, the founders who themselves will all doubtless become millionaires overnight (if they aren't already). Perhaps whilst your pondering the thought of whether to pay your mortgages off or have an extra week in Butlins this year, you could spare a thought for the lowly investors that made your dream possible and recompense them for some of the appalling loans you brought to market and which ended going t*ts up after one or two payments. If you're thinking of having a beano for all the employees by way of reward I can suggest two or three hotels in London & Eastbourne which would be more than happy to accommodate your guests on a book now, never pay later arrangement. They come highly recommended..by yourselves in fact. Oh..the irony. So what percent of loans are we talking about? IMO all platforms have this issue - as do all the banks. The only way to avoid it is put money on deposit. After 13 years of p2p my returns are spanking cash, even with these minor irritations. Rule 1, diversify Rule 2, don’t forget Rule 1 Cash yes, but I have had better returns in non p2p investments than I have in p2p. Hindsight is easy though.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 31, 2018 1:33:58 GMT
DM reports float expected in next 2 weeks (early Sept) at £1.5bn
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benaj
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N/A
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Post by benaj on Aug 31, 2018 6:28:54 GMT
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agent69
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Post by agent69 on Sept 3, 2018 8:43:25 GMT
Samir was on radio 5 live this morning singing the praises of the business. Says that nobody who has a diversified portfolio of over 100 loans has ever lost money.
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ashtondav
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Post by ashtondav on Sept 3, 2018 9:54:02 GMT
Well that is wonderful news for all the backers who showed faith in FC's concept and are now likely to multiply their investment many times over. Likewise, the founders who themselves will all doubtless become millionaires overnight (if they aren't already). Perhaps whilst your pondering the thought of whether to pay your mortgages off or have an extra week in Butlins this year, you could spare a thought for the lowly investors that made your dream possible and recompense them for some of the appalling loans you brought to market and which ended going t*ts up after one or two payments. If you're thinking of having a beano for all the employees by way of reward I can suggest two or three hotels in London & Eastbourne which would be more than happy to accommodate your guests on a book now, never pay later arrangement. They come highly recommended..by yourselves in fact. Oh..the irony. Daft comment. FC are no worse than most p2p lenders. And better than most. We've all been shafted by p2p on occasion (been on FS? Collateral? Lendy?), but thankfully weve all made more money than being in a BS (unless you didn't diversify.)
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Sept 3, 2018 9:58:03 GMT
Time for a debt for equity swap of our own?
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